SuperMedia Inc (NASDAQ:SPMD) investors should pay attention to a decrease in enthusiasm from smart money of late.
In the eyes of most market participants, hedge funds are viewed as slow, outdated financial vehicles of years past. While there are more than 8000 funds trading at the moment, we at Insider Monkey hone in on the upper echelon of this group, around 450 funds. It is estimated that this group has its hands on the lion’s share of the smart money’s total capital, and by keeping an eye on their best stock picks, we have brought to light a number of investment strategies that have historically outstripped the market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 23.3 percentage points in 8 months (see the details here).
Just as key, positive insider trading sentiment is a second way to break down the investments you’re interested in. As the old adage goes: there are lots of stimuli for a corporate insider to cut shares of his or her company, but just one, very simple reason why they would behave bullishly. Several academic studies have demonstrated the valuable potential of this method if piggybackers know what to do (learn more here).
With these “truths” under our belt, it’s important to take a gander at the key action surrounding SuperMedia Inc (NASDAQ:SPMD).
How are hedge funds trading SuperMedia Inc (NASDAQ:SPMD)?
Heading into Q2, a total of 8 of the hedge funds we track held long positions in this stock, a change of 0% from the first quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of key hedge fund managers who were boosting their holdings substantially.
When looking at the hedgies we track, Paulson & Co, managed by John Paulson, holds the largest position in SuperMedia Inc (NASDAQ:SPMD). Paulson & Co has a $10.1 million position in the stock, comprising 0.1% of its 13F portfolio. Sitting at the No. 2 spot is Fortress Investment Group, managed by Michael Novogratz, which held a $7.8 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other peers that hold long positions include Kyle Bass’s Hayman Advisors, D. E. Shaw’s D E Shaw and Prem Watsa’s Fairfax Financial Holdings.
Seeing as SuperMedia Inc (NASDAQ:SPMD) has faced bearish sentiment from the entirety of the hedge funds we track, logic holds that there were a few hedgies that slashed their full holdings heading into Q2. It’s worth mentioning that William Michaelcheck’s Mariner Investment Group sold off the biggest investment of the “upper crust” of funds we monitor, totaling an estimated $0.1 million in stock. These transactions are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
How are insiders trading SuperMedia Inc (NASDAQ:SPMD)?
Bullish insider trading is particularly usable when the company in question has experienced transactions within the past 180 days. Over the latest 180-day time frame, SuperMedia Inc (NASDAQ:SPMD) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
With the results exhibited by Insider Monkey’s tactics, everyday investors should always monitor hedge fund and insider trading sentiment, and SuperMedia Inc (NASDAQ:SPMD) applies perfectly to this mantra.